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According to the Ministry of Labor and Social Security, the new medical insurance policy will soon be tried out in designated cities and towns. Under the new system, citizens will enjoy 50%-off medical fees. But whether the remaining medical system will get in the way of the new one remains a hot issue. We have collected the major concerns from the media.
An article from Worker's Daily points out the putting into place a new medical insurance system is something that stands to benefit all citizens; therefore needs to be carefully implemented. In the past, the medical insurance system in certain parts of the country has been abused, and old systems die hard.
The article says that, long before the new medical insurance system comes into place, some large and medium cities in China have already set up their own medical insurance patterns, in which they provided a limited range of favorable policies to jobless people.
However the author goes on to say the local medical system often sets a higher threshold, one which is less accessible to the average wage earners. Under the local system, some self-employed people have to pay a premium of several thousand yuan on a yearly basis, while in other cities, in order to enjoy the in-hospital service, one has to pay a premium up to 2 years in advance, which doesn't even cover the outpatient fee.
The article comments that the new medical insurance system was designed to curb medical malpractice and to ensure the accessibility of medical services to people with lower incomes. The new batch of pilot programs should shoulder its responsibility in paving the way for a mature and affordable medical system in the country.
Staying in the much-talked-about issue of housing prices: Recently, in the Bo'ao real estate development forum, the head of the China real estate association suggests putting forward the legislation of property tax. Meanwhile, experts with the NDRC, or national Development and Reform Commission, echo the view, placing the property tax as a priority in lowering housing prices in many cities.
Would imposing property tax necessarily lower housing prices? An article from China Youth Daily raised a big question mark. The author disagrees with the proposal.
First, the author quotes other countries' experiences as an example. Elsewhere, the purpose of property taxation is not to lower housing prices but a way for local government to collect financial income.
Second, in China's case, imposing property tax among property owners will not diminish the confidence of purchasing an apartment. This is because, usually the buyer could pay the tax periodically over 70 years, making the initial payment less of a burden.
Third, the implementation of property tax could discourage people to rent an apartment eventually. The tax policy applies to housing under investment purposes; it would naturally lead to higher rent. Fewer people will want to rent an apartment in this case, instead more will be driven to purchase a house.
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